Ukrainians in Poland warned about tax risks: who must declare income from Ukraine

Ukrainians who moved to Poland after the outbreak of the full-scale war, but continue to work remotely for Ukrainian employers or provide services to Ukrainian customers, may face tax obligations in their country of residence.

Experts emphasize that the Polish tax authorities have recently tightened control over the income of persons who actually reside in Poland but receive payments from abroad.

When the obligation to pay taxes arises

The key factor is the status of a tax resident of Poland. As a rule, a person is considered a tax resident of Poland if:

he stays in Poland for more than 183 days during the year;

or has a center of vital interests there (family, housing or main place of business).

In this case, a person must declare his income in accordance with Polish law, even if it is received from a Ukrainian employer.

What is the liability for violations

If a tax resident of Poland does not declare income or cannot confirm its origin, the tax service may:

additionally assess taxes;

assess fines and penalties;
in cases provided for by law, hold liable for tax offenses.

Polish authorities pay special attention to those who permanently reside in Poland, but receive salaries in foreign accounts or work remotely for a foreign employer.

Can they really collect 75% of the tax

Experts emphasize that the information about the alleged automatic collection of 75% of the tax from Ukrainians is not true.

Such a rate can be applied only in exceptional cases, when the tax authorities establish that a person received income of unconfirmed or unknown origin.

How to avoid problems

Experts recommend:

determine your tax status in Poland;
check whether you are required to file a tax return;
take into account the provisions of the Convention between Ukraine and Poland on the avoidance of double taxation;
keep documents confirming the origin of income;
if necessary, consult a tax consultant.

Experts note that timely compliance with tax requirements will help avoid fines, penalties and other financial consequences.